A new law has been approved in the US Parliament on Tuesday to weaken China economically. The purpose of this new law is to remove China’s developing country status.
This step of America is going to give a severe blow to China. With this step of Uncle Sam, China will no longer be able to get loans from the World Bank and other financial institutions easily and at low interest.
China takes great advantage of its status of being a developing country. He takes cheap loans from financial institutions like the World Bank, gives loans to underdeveloped countries on expensive terms, and traps them in the debt trap.
But now, after the bill’s approval, no such financial institution whose funding includes America will be able to give a loan to China easily or cheaply.
It was recognized in the US Parliament that China is now the second-largest economy in the world. It cannot be given concessions like other developing countries in such a situation.
In March this year, the legislation, known as the “Developing Nation Status Act”, was passed unanimously by the Foreign Relations Committee in the lower house of the US Parliament.
How strong an atmosphere has been created against China in America can be gauged from the fact that when this bill was voted on in March, not a single MP out of 415 MPs voted in favour of China.
According to media reports, this was the first time in the last 22 years after the 9/11 attack that every MP had agreed on a resolution. US lawmakers said China could no longer be considered a developing country given its significant economy, military power and extensive investments worldwide.
US lawmakers have claimed that China has taken advantage of these states for unfair advantage in multilateral negotiations. The US House of Representatives passed China is Not a Developing Country Act on March 27 with a unanimous vote of 415 to 0.
According to the Economic Times report, American lawmakers believe China’s cheap loans from financial institutions were used in the ‘Belt and Road Initiative’. China took cheap loans and distributed them among poor countries on desired terms. Due to this project China, many countries got trapped in a debt trap.
Patrick Cronin, director of the Asia-Pacific Security Project at the Hudson Institute and a former US Department of Defense and State Department official, said in an interview with Al Jazeera in April that China was taking advantage of developing country status and Simultaneously taking advantage of two levels.
Meanwhile, on this move of America, China’s Foreign Ministry said on Friday that it is not America’s job to decide whether China is a developing country.
According to the Global Times, Foreign Ministry spokesman Wang Wenbin said that China’s status as the world’s largest developing country is rooted in facts and international law, and it is not something that a bill of the US Congress can easily erase. Could
Wang Wenbin said during a regular press conference, “The US is not calling China a ‘developed country’ because of praise or recognition of China’s development success. The real motive behind revoking China’s developing country status is China’s development have to stop.”
